Canadian investors have had plenty to cheer about in recent months. The S&P/TSX Composite Index is up more than 10% since June and is now trading just shy of 20% on the year.
But with the market at all-time highs today, is now really a good time to be investing?
It’s a fair question. For those with short-term goals, I might be hesitant to invest today. But for anyone who’s got decades of time in front of them, I’d strongly encourage that investor to not be on the sidelines right now.
You’ll never be able to time the market perfectly. Enduring volatile market periods is inevitable as an investor. Instead, what you can control is owning high-quality businesses and holding those shares for years.
With that in mind, I’ve put together a well-diversified basket of four top Canadian stocks.
If you’ve got some cash to spare in November, these companies should be on your radar.
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Constellation Software
Constellation Software (TSX:CSU) carries a steep price tag, in addition to currently trading just shy of all-time highs. But when it comes to market-beating returns, not many companies on the TSX can compete with this tech stock.
Shares are up more than 200% over the past five years. In comparison, the Canadian market as a whole has returned about 50%.
If you’re willing to pay up, this is one of the most reliable market-beating stocks around.
Bank of Nova Scotia
Growth investors looking for their next multi-bagger would be wise to throw in a few dependable dividend stocks in their portfolio.
I can almost guarantee you that owning shares of Bank of Nova Scotia (TSX:BNS) won’t be as exciting as owning Constellation Software. But at a nearly 6% dividend yield, that alone is enough of a reason to have this bank stock on your watch list.
Bank of Nova Scotia can not only keep volatility to a minimum in your portfolio but also pay a huge dividend.
Brookfield
Brookfield (TSX:BN) is another great all-around company to own. It’s also no stranger to delivering market-beating returns, which it has done over the past five years. But it’s the diversification that has me ranking Brookfield as a top pick for long-term investors.
As a global asset manager, the stock provides instant diversification to an investment portfolio. The company has operations spread across the globe, which cover a range of different industries.
This is the type of stock that you could dollar-cost-average into over years and not have to second guess once.
Northland Power
The last pick on my list is a beaten-down renewable energy stock that’s trading at what I think is a massively opportunistic discount.
Like many of its peers, shares of Northland Power (TSX:NPI) have been on the decline since early 2021. Excluding dividends, the stock is not only trailing the market’s returns over the past five years but is trading at a loss.
In the short term, one silver lining is that the dividend yield has shot up to above 5% with the recent stock price decline. But over the long term, as a renewable energy bull myself, I think it’s only a matter of time before Northland Power returns to its market-beating ways.
